MLM Directory

LLC for a network marketing business?

I am signing up with a network marketing company to market nutritional products. Should I consider signing up as an LLC, or simply use a tax ID number? What are the advantages to signing up as an LLC?

Public Comments

1. For most people, it's just as well to sign up using your own name and SS# (if you are in the U.S.). Most legitimate Network Marketing companies would allow you to transfer the business enterprise to an LLC or corporation later if you start making a larger income that requires some protection. One exception would be if your current full time job has restrictions that forbid you to have additional employment. In that case you may be able to hide the second job better by signing up using a separate business entity. Another reason to consider the LLC or corporation route would be if you have current legal issues such as a upcoming or pending divorce or debt collection issues that could lead to an attachment of income or assets. If this is the case, the LLC may shield your business income from collection efforts. Good luck in the new business. If you will do the work that is required, these things can earn a very good income.